Chennai: Market regulator Sebi has relaxed guidelines pertaining to setting up cyber security operations centre for small market intermediaries as they lack knowledge in cyber security.
The decision has been taken after discussions with market participants, the Securities and Exchange Board of India (Sebi) said in a circular.
During the meeting it was noted that compliance with cyber security guidelines may be onerous for smaller intermediaries because of lack of knowledge about cyber security and also the cost factor involved in setting up own security operations centre.
Under the new framework, Sebi said, small intermediaries can utilise services of market security operations center (SOC), which is proposed to be set up by market infrastructure institutions (MIIs) with the objective to provide cyber security solutions to such intermediaries.
Such a centre will be set up as a separate entity and MIIs will have at least 51 per cent stake in the new entity.
Intermediaries, which do not have the capability to set up such centre on their own, can opt for market SOC. Market SOC would provide only technology perspective for cyber security guidelines, but people and process perspectives of cyber security would still have to be managed by intermediaries.